Opening Options

More Resources

Status:

Corporation tax

This section has no associated Explanatory Notes

28(1)After Chapter 1 insert—

“Chapter 1ADisposals of income streams through partnerships

757AApplication of Chapter

(1)This Chapter applies if directly or indirectly in consequence of, or otherwise in connection with, arrangements involving a company within the charge to corporation tax (“the transferor”) and another person (“the transferee”)—

(a)there is, or is in substance, a disposal of a right to relevant receipts by the transferor to the transferee,

(b)the disposal is effected (wholly or partly) by or through a partnership (“the relevant partnership”),

(c)at any time—

(i)the transferor is a member of the relevant partnership or of a partnership associated with the relevant partnership, and

(ii)the transferee is a member of the relevant partnership or of a partnership associated with the relevant partnership, and

(d)the main purpose, or one of the main purposes, of one or more steps taken in effecting the disposal is the obtaining of a tax advantage for any person.

(2)In subsection (1)(a) the reference to a disposal of a right to relevant receipts includes anything constituting a disposal of such a right for the purposes of TCGA 1992.

(3)For the purposes of subsection (1)(b) the disposal might, in particular, be effected by an acquisition or disposal of, or an increase or decrease in, an interest in the relevant partnership (including a share of the profits or assets of the relevant partnership or an interest in such a share).

(4)For the purposes of subsection (1)(c) it does not matter if the transferor and the transferee are not members of a partnership as mentioned at the same time.

(5)For the purposes of subsection (1)(c) a partnership is “associated” with the relevant partnership if—

(a)it is a member of the relevant partnership, or

(b)it is a member of a partnership which is associated with the relevant partnership (whether by virtue of paragraph (a) or this paragraph).

(6)In subsections (1)(c) and (4) references to the transferor include a person connected with the transferor and references to the transferee include a person connected with the transferee.

(7)In this Chapter—

“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable),

“partnership” includes a limited liability partnership whether or not section 1273(1) of CTA 2009 applies in relation to it,

“relevant receipts” means any income—

(a)

which (but for the disposal) would be charged to corporation tax as income of the transferor (whether directly or as a member of a partnership), or

(b)

which (but for the disposal) would be brought into account as income in calculating profits of the transferor (whether directly or as a member of a partnership) for corporation tax purposes, and

“tax advantage” means a tax advantage, as defined in section 1139, in relation to income tax or the charge to corporation tax on income.

757BRelevant amount to be treated as income

(1)The relevant amount is to be treated as income of the transferor chargeable to corporation tax in the same way and to the same extent as that in which the relevant receipts—

(a)would have been chargeable to corporation tax as income of the transferor, or

(b)would have been brought into account as income in calculating profits of the transferor for corporation tax purposes,

but for the disposal.

(2)In subsection (1) “the relevant amount” is to be read in accordance with section 753(2) and section 753(3) and (4) applies for the purpose of determining when income under subsection (1) is treated as arising.

(3)For this purpose, in section 753(2) to (4) references to the transfer of the right are to be read as references to the disposal of the right.

Print The Whole Schedule

Print The Whole Part

Print This Section only

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

You have chosen to open The Whole Act as a PDF

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

See additional information alongside the content

Show Explanatory Notes for Sections: Displays relevant parts of the explanatory notes interweaved within the legislation content.

Opening Options

Different options to open legislation in order to view more content on screen at once

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

the original print PDF of the as enacted version that was used for the print copy

lists of changes made by and/or affecting this legislation item

confers power and blanket amendment details

all formats of all associated documents

correction slips

links to related legislation and further information resources

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

the original print PDF of the as enacted version that was used for the print copy